There are a number of ways one can implement the balanced scorecard translating strategy into action. Perhaps the best way to learn the different ways would be to look for books on the subject, such as The Balanced Scorecard: Translating Strategy into Action by Robert Kaplan.
A balanced scorecard is a strategy performance management tool used very often in business and industry to align business activities to the vision and strategy of the organization.
One can find more information about strategy or strategic management from various websites. One could read through sites such as Balanced Scorecard, SAP, Experian and Wikipedia.
The balanced scorecard is a useful tool, which, when properly implemented can navigate a business to greater success. It is an organizational framework for implementing and managing strategy at all levels of an enterprise by linking objectives, initiatives, and measures to an organization's strategy. It integrates financial measures with other key performance indicators around customer perspectives, internal business processes, and organizational growth, learning, and innovation. Since the concept was introduced in 1992, balanced scorecards have been successfully implemented worldwide at corporate, strategic business unit, and individual levels at hundreds of organizations.
How can a firm implement this Strategy.
Balanced Scorecard AdvantagesThe first advantage of using the balanced scorecard method is that by looking at four aspects of a company's performance, you really do get a balanced view of company performance. Unlike traditional methods of tracking the financial health of a business, the balanced scorecard gives you a full picture as to whether your company is meeting its objectives. While it may seem that a company is doing well financially, it may be that customer satisfaction is down, employee training is inadequate, or that the processes are outdated. Second, by using a balanced scorecard approach, the immediate future isn't the only thing being evaluated. Often, when an accountant sees the financial bottom line (perhaps the company isn't doing well), suggestions are given that are immediate, but do not look at the long-term. Using balanced scorecards allows for stakeholders to determine the health of short, medium, and long term objectives at a glance.Finally, by using a balanced scorecard, a company can be sure that any strategic action implemented matches the desired outcomes. Will raising the price of a product help the bottom line of the company in the long run? It might, if the customer is satisfied with that product, or if the processes involved with creating that product make the product of a higher quality.Balanced Scorecard DisadvantagesWhile there are many advantages to using balanced scorecards in your accounting toolbox, there are a few disadvantages to the method as well. First, the balanced scorecard takes forethought. It is not a tool you can just think up one night to solve a problem. Instead, it is recommended that you hold a meeting to plan out what goals you would like to see your company reach in each of the four above areas. Once you have clearly stated objectives, you can then begin to break down these objectives in what you will need, financially, to bring these objectives to fruition. Second, while the balanced scorecard gives you an overall view of the four areas for concern in business growth and development, these four areas do not paint the whole picture. The financial information included on the scorecard is limited. Instead, to be successfully implemented, the balanced scorecard must be part of a bigger strategy for company growth that includes meticulous accounting methods.Finally, many companies use metrics that are not applicable to their own situation. It is vitally important when using balanced scorecards to make the information being tracked applicable to your needs. Otherwise, the metrics will be meaningless.
Rudolf W. Butz is a researcher who has written several books on management and business topics, including "Balanced Scorecard Evolution: A Dynamic Approach to Strategy Execution" and "The Balanced Scorecard: Turn Your Data into a Roadmap to Success." His works often focus on strategic management, performance measurement, and organizational improvement.
Define cost leadership strategy and relate this strategy with Porter's Five Forces of CompetitionExplain rubins restaurant how the Company implement this strategy and what are the advantage and risk associated?
the latter! Organisation is developed to implement stategy
After becoming vice chairman with Niall FitzGerald of Unilever PLC in 1999, Burgmans helped implement the company's radical "Path to Growth" strategy.
One limitation to strategy is the fact that it can't be easily changed. When the industry changes, the business has to make changes that take a long time to implement.
I think it's the code for an automated bank withdrawal to a "Balanced Strategy" (bal strat) IRA or Mutual Fund. I moved some money from my checking account to a "Balanced Strategy" fund and this is how it was coded by my bank.
Plan a strategy to solve a problem and then implement your strategy to get the problem taken care of.